Nickel futures fall as muted demand hurts

Amid muted demand at domestic spot markets and profit-booking by speculators nickel prices dropped 0.88 per cent to Rs 709.50 per kg in futures trade today even as metal strengthened at the London Metal Exchange (LME).
At Multi Commodity Exchange, nickel for delivery in August was trading Rs 6.30, or 0.88 per cent, down at Rs 709.50 per kg in a business turnover of 69 lots.
The metal for delivery in July also shed Rs 5.90, or 0.83 per cent, to Rs 703.80 per kg in a turnover of 1,529 lots.
Analysts said the fall in nickel prices in futures trade is mostly attributed to a weakening trend at the domestic spot markets due to easing demand from alloy-makers but metal's strength overseas, limited the losses.

Globally, nickel for delivery in three months advanced 2.6 per cent to settle at USD 10,545 per tonne in yesterday's trade at the LME, the biggest gain among the six main metals on the bourse.